Nicaragua

The Republic of Nicaragua, the largest country in Central America, bridges the Caribbean Sea and the Pacific Ocean between Honduras and Costa Rica. A land of volcanoes, lakes, and tropical forests, Nicaragua combines stunning geography with a complex history marked by colonial legacy, revolution, and political authoritarianism. Its population blends Indigenous, European, and African-Caribbean heritages, and while agriculture remains central to the economy, remittances, gold exports, and regional alliances increasingly shape national life.

Historical Background

Spanish colonisation began in the early 16th century, with settlements concentrated on the Pacific coast. After independence from Spain in 1821, Nicaragua joined the Federal Republic of Central America, dissolving in 1838 to become a fully sovereign state. The British presence along the Caribbean coast persisted until the late 19th century, leaving lasting linguistic and cultural diversity in the Atlantic regions.
The 20th century was defined by foreign intervention and authoritarian rule. The U.S. occupied Nicaragua (1912–1933), withdrawing after the rise of nationalist leader Augusto César Sandino, whose assassination in 1934 enabled the Somoza family to seize power. The Somoza dynasty (1937–1979), supported by Washington, dominated politics for decades until the Sandinista Revolution (1979) led by the Sandinista National Liberation Front (FSLN) overthrew it.
The Sandinista government, headed by Daniel Ortega, pursued socialist policies and aligned with Cuba and the Soviet bloc, provoking a U.S.-backed Contra war during the 1980s. The conflict devastated the economy and divided the country. In 1990, Ortega lost elections to Violeta Chamorro, marking a transition to multi-party democracy.
Ortega returned to power in 2006, and through successive re-elections in 2011, 2016, and 2021, consolidated control over all branches of government. Since 2018, his administration has suppressed protests, censored media, imprisoned opponents, and closed over 3,000 NGOs, turning Nicaragua into a de facto one-party state. By 2022, the ruling FSLN controlled all 153 municipalities.

Geography and Environment

• Location: Central America, between Honduras and Costa Rica, bordered by the Caribbean Sea (east) and the Pacific Ocean (west)
• Coordinates: 13°N, 85°W
• Area: 130,370 sq km (land 119,990; water 10,380)
• Borders: Honduras (940 km), Costa Rica (313 km)
• Coastline: 910 km
• Topography: Volcanic Pacific plains, central highlands, and humid Atlantic lowlands
• Highest point: Mogotón (2,085 m)
• Major lakes: Lake Nicaragua (8,150 sq km) and Lake Managua
• Climate: Tropical; wet (May–Nov) and dry (Dec–Apr) seasons

Nicaragua’s volcanic terrain includes active peaks like Masaya, San Cristóbal, and Cerro Negro, making it prone to earthquakes and eruptions. The country faces frequent hurricanes, droughts, and floods, especially along the Caribbean coast.
Land use (2022):

• Agricultural: 42.3%
• Forest: 26.7%
• Other: 31%

Natural resources: Gold, silver, copper, timber, fisheries
Environmental challenges: Deforestation, soil erosion, water contamination, and vulnerability to climate change.

People and Society

• Population (2024): 6.68 million
• Median age: 29 years
• Urbanisation: 59.8%
• Major city: Managua (1.1 million)

The population is concentrated in the western lowlands, particularly near Managua and León.
Ethnic composition:

• Mestizo: 69%
• White: 17%
• Black (Afro-Caribbean): 9%
• Indigenous: 5%

Languages:

• Spanish (official): spoken by 99.5%
• English and Indigenous languages (Miskito, Sumo, Rama) are common on the Caribbean coast.

Religion:

• Roman Catholic: 44.9%
• Protestant (mainly Evangelical): 38.7%
• None/Other: 13.7%

Health indicators:

• Life expectancy: 74.7 years
• Fertility rate: 1.83 children per woman
• Infant mortality: 14.4 per 1,000 live births
• Health expenditure: 9.7% of GDP

Education:

• Expenditure: 2.9% of GDP
• Literacy rate: 83% (est.)
• School life expectancy: 11 years

Despite improvements in healthcare and literacy, Nicaragua remains one of the poorest nations in Latin America, with rural poverty and emigration among persistent challenges.

Government and Politics

• Official name: República de Nicaragua
• System: Presidential republic
• Capital: Managua
• Administrative divisions: 15 departments and 2 autonomous Caribbean regions (Costa Caribe Norte and Sur)

Chief of State and Head of Government:

• President Daniel Ortega Saavedra (since 10 January 2007)
• Vice President: Rosario Murillo (his wife)

The 2021 elections, widely condemned as fraudulent, returned Ortega for a fourth consecutive term after the arrest of major opposition leaders. Power is concentrated within the FSLN (Sandinista National Liberation Front), which controls the executive, legislature, judiciary, and police.
Legislature: Unicameral National Assembly (91 members)

• FSLN: 75 seats
• Opposition: nominal representation
• Women: 54% of seats (gender parity law), though decision-making remains top-down.

Judiciary: Supreme Court of Justice (Corte Suprema de Justicia) — constitutionally independent but politically subservient.
The 1987 Constitution, amended multiple times, guarantees civil liberties on paper but in practice allows sweeping executive control.

Economy

Nicaragua’s economy is agro-export-based but increasingly sustained by remittances and gold mining. Despite sanctions and reduced investment, growth remains moderate due to foreign income inflows and commodity exports.
Economic indicators (2024):

• GDP (PPP): $52.99 billion
• GDP per capita (PPP): $7,700
• GDP growth: 3.6%
• Inflation: 4.6%
• Unemployment: 4.6%
• Public debt: 33.3% of GDP
• Poverty: 24.9% (2016 est.)

Sectoral breakdown:

• Agriculture: 14.4%
• Industry: 27.6%
• Services: 46.8%

Key exports: Garments, gold, beef, coffee, insulated wireMain partners: USA (51%), Mexico, El Salvador, Canada, SwitzerlandRemittances: 26.6% of GDP (among the world’s highest)
Despite U.S. sanctions, Nicaragua benefits from Chinese and Russian investment and regional trade through SICA and Petrocaribe.

Energy and Infrastructure

Electricity generation (2023):

• Fossil fuels: 35.5%
• Geothermal: 15.7%
• Biomass: 20.4%
• Hydro: 14.9%
• Wind: 12.9%

Rural electrification: 66% (urban: 100%)
The country has strong renewable energy potential, particularly in geothermal and wind power, but suffers from limited transmission infrastructure and reliance on imported fuel.
Transport:

• Road network concentrated in the Pacific zone
• Caribbean regions less connected
• Ports: Corinto (Pacific) and Bluefields (Caribbean)
• International Airport: Augusto C. Sandino (Managua)

Defence and Security

• Forces: Ejército de Nicaragua (Army, Navy, Air Wing), National Police
• Personnel: ~12,000 active
• Defence budget: ~0.5% of GDP (2024)
• Primary roles: Border protection, disaster relief, regime stability

The military and police report directly to the president, often used for domestic repression. A 2025 defence pact with Russia deepened cooperation in security and cyber monitoring.
The U.S. and EU have imposed arms and financial restrictions in response to human rights violations.

International Relations

Nicaragua belongs to the United Nations, SICA, Petrocaribe, G-77, and other multilateral bodies, though it is increasingly isolated within the OAS due to democratic backsliding.
The Ortega government maintains close alliances with Russia, China, Cuba, and Venezuela, positioning itself against U.S. and EU influence in Latin America. In 2021, it cut diplomatic ties with Taiwan in favour of the People’s Republic of China.
Diplomatic missions:

• Embassy in Washington, D.C.: 1627 New Hampshire Ave NW
• U.S. Embassy in Managua: Carretera Sur, Km 5.5

Culture and Heritage

Nicaraguan culture reflects a synthesis of Indigenous, Spanish, and Afro-Caribbean traditions. Folk music, poetry, and festivals play a major role in national identity — notably the Fiestas de Santo Domingo and La Purísima, celebrating Catholic devotion blended with local customs.
The Caribbean coast retains a distinct Creole and Miskito culture, with English and reggae influences.